THE SMART NEWS SOURCE | Feb 09 2010 17:06 | LAST UPDATED Feb 09 2010 17:06 |
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I don't know when global oil supplies will start to decline. I do know that another resource has already peaked and gone into free fall: the credibility of the body that's meant to assess them. Last week two whistleblowers from the International Energy Agency alleged that it has deliberately upgraded its estimate of the world's oil supplies in order not to frighten the markets. Three days later, a paper published by researchers at Uppsala University in Sweden showed that the IEA's forecasts must be wrong, because it assumes a rate of extraction that appears to be impossible. The agency's assessment of the state of global oil supplies is beginning to look as reliable as Alan Greenspan's blandishments about the health of the financial markets. If the whistleblowers are right, we should be stockpiling ammunition. If we are taken by surprise, if we have failed to replace oil before the supply peaks then crashes, the global economy is stuffed. But nothing the whistle-blowers said has scared me as much as the conversation I had last week with a Pembrokeshire farmer. Wyn Evans, who runs a mixed farm of 170 acres, has been trying to reduce his dependency on fossil fuels since 1977. He has installed an anaerobic digester, a wind turbine, solar panels and a ground-sourced heat pump. He has sought wherever possible to replace diesel with his own electricity. Instead of using his tractor to spread slurry, he pumps it from the digester on to nearby fields. He's replaced his tractor-driven irrigation system with an electric one, and set up a new system for drying hay indoors, which means he has to turn it in the field only once. Whatever else he does is likely to produce smaller savings. But these innovations have reduced his use of diesel by only about 25%. According to farm scientists at Cornell University, cultivating one hectare of maize in the United States requires 40 litres of petrol and 75 litres of diesel. The amazing productivity of modern farm labour has been purchased at the cost of a dependency on oil. Unless farmers can change the way it's grown, a permanent oil shock would price food out of the mouths of many of the world's people. Any responsible government would be asking urgent questions about how long we have got. Instead, most of them delegate this job to the International Energy Agency. I've been bellyaching about the British government's refusal to make contingency plans for the possibility that oil might peak by 2020 for the past two years, and I'm beginning to feel like a madman with a sandwich board. Perhaps I am, but how lucky do you feel? The new World Energy Outlook published by the IEA last week expects the global demand for oil to rise from 85-million barrels a day in 2008 to 105-million in 2030. Oil production will rise to 103-million barrels, it says, and biofuels will make up the shortfall. If we want the oil, it will materialise. The agency does caution that conventional oil is likely to "approach a plateau" towards the end of this period, but there's no hint of the graver warning that the IEA's chief economist issued when I interviewed him last year: "We still expect that it will come around 2020 to a plateau ... I think time is not on our side here." Almost every year the agency has been forced to downgrade its forecast for the daily supply of oil in 2030: from 123-million barrels in 2004, to 120-million in 2005, 116-million in 2007, 106-million in 2008 and 103-million this year. But according to one of the whistleblowers, "even today's number is much higher than can be justified, and the International Energy Agency knows this". The Uppsala report, published in the journal Energy Policy, anticipates that maximum global production of all kinds of oil in 2030 will be 76-million barrels per day. Analysing the IEA's figures, it finds that to meet its forecasts for supply, the world's new and undiscovered oilfields would have to be developed at a rate "never before seen in history". As many of them are in politically or physically difficult places, and as capital is short, this looks impossible. Assessing existing fields, the likely rate of discovery and the use of new techniques for extraction, the researchers find that "the peak of world oil production is probably occurring now". Are they right? Who knows? Last month the UK Energy Research Centre published a massive review of all the available evidence on global oil supplies. It found that the date of peak oil will be determined not by the total size of the global resource but by the rate at which it can be exploited. New discoveries would have to be implausibly large to make a significant difference: even if a field the size of all the oil reserves ever struck in the US were miraculously discovered, it would delay the date of peaking by only four years. As global discoveries peaked in the 1960s, a find like this doesn't seem very likely. Regional oil supplies have peaked when about one third of the total resource has been extracted: this is because the rate of production falls as the remaining oil becomes harder to shift when the fields are depleted. So the assumption in the IEA's new report, that oil production will hold steady when the global resource has fallen "to around one half by 2030" looks unsafe. The UK Energy Research Centre's review finds that, just to keep oil supply at present levels, "more than two thirds of current crude oil production capacity may need to be replaced by 2030 ... At best, this is likely to prove extremely challenging." There is, it says "a significant risk of a peak in conventional oil production before 2020". Unconventional oil won't save us: even a crash programme to develop the Canadian tar sands could deliver only five million barrels a day by 2030. As a report commissioned by the US Department of Energy shows, an emergency programme to replace current energy supplies or equipment to anticipate peak oil would need about 20 years to take effect. It seems unlikely that we have it. The world economy is probably knackered, whatever we might do now. But at least we could save farming. There are two possible options: either the mass replacement of farm machinery or the development of new farming systems that don't need much labour or energy. There are no obvious barriers to the mass production of electric tractors and combine harvesters: the weight of the batteries and an electric vehicle's low-end torque are both advantages for tractors. A switch to forest gardening and other forms of permaculture is trickier, especially for producing grain; but such is the scale of the creeping emergency that we can't afford to rule anything out. The challenge of feeding seven or eight billion people while oil supplies are falling is stupefying. It'll be even greater if governments keep pretending that it isn't going to happen. - guardian.co.uk © Guardian News and Media 2009 TOPICS IN THIS ARTICLE
Comments
You can stick your heads back in the sand now.
free speech on November 17, 2009, 8:33 am
Nice one, free speech.
Neuren Pietersen on November 17, 2009, 9:43 am
the only alternative here it seems, is a massive intervention on the demand side of fossil fuel. a massive roll out of first hybrid to fully electric cars. it will take a heavily juiced up grid to power the nation's electric cars and trains, we need nuclear power like yesterday. for all the world's energy needs that cannot be sustained on fossil fuels, there's no realistic alternative besides nuclear power for the electric option.
unless and until our spineless politicians find the guts to act, we are doomed.
manu . on November 17, 2009, 10:07 am
Contribution made to Parliamentary hearings on impacts of climate change: 17-18 Nov 09
1. Failing to react decisively on climate changes and peak oil The South African Government is failing to react decisively on the twin issues, namely climate changes and peak oil, which jeopardize the future food security and well being of the Nation. Both issues, which are the two sides of the same coin, should inform us to steer the country out of fossil fuel (FF) towards a low carbon development. These are compounded by the SA dangerous dependency (95%) and addiction on coal for its electricity generation as well as by the coal horrendous impact on water and air quality. In short, we are deep in a grove going straight to a cliff. 2. Lack of alternatives ready The Government did missed the opportunity to plan and invest in the required mix energy sources when it was clear, years ago that Eskom will shortly run out of steam End of 2009, very little has been done and the country is in a corner with looming electricity blackout, deadly tariff increases and no ready alternatives. The Government is failing the country. It is therefore our concerted opinion that if it does not rapidly get its acts together (by f.e ending Eskom monopoly, commit to at least 20% Green House Gases decrease by 2020 and related RE energy planning coverage), it will put the Nation at risk and most probably will have no other alternatives than playing fire fighters in a burning SA. 3. Implementation problem The Government had decided on a 30% share of energy production by the IPP. The 2c/kWh levy is not being used for supporting IPP nor renewables. It had also accepted a 4% RE energy coverage as well as the Long term Mitigation Scenario (LTMS)’s recommendations for the rapid planning and development of Renewable Energy (RE) sources. The RE Feed In Tariff, which is supposed to define and facilitate the IPP involvement in RE is still obstructed by many hurdles, most probably due to Eskom monopoly. It appears that, as in other sectors the Government has difficulties to focus and implement due to other priorities 4. Civil society buys in problem A large majority of the civil society is disconnected from Nature, hence it has lost interest and capacity to speak out for its protection. This is considered to be a major problem as the civil society should question the status quo, initiate the changes and change it self. It is also the responsibility of the government to inform and build resilience of the South African society for the coming low carbon situation as well as for the climate changes impacts. The “International Energy Agency” has just been found deliberately upgrading its estimate of the world's oil supplies in order not to frighten the markets”. The oil supply crunch could happen sooner than expected and we would be as prepared as babies in nappies left crying under the rain. Food security will also be a huge problem because we do use 10 calories of oil to produce one calorie of food! As Mr George Monbiot mentioned recently in the Guardian news: “the challenge of feeding seven or eight billion people while oil supplies are falling is stupefying”. 5. A new development paradigms based on low carbon Dear Mrs and Mr members of parliament, we urge you to see further than the Fossil Fuel box. To envision a low carbon development, which dismisses at once false solutions such as Carbone offsetting, capture and storage, synfuel…. The latter have been created just to maintain FF business as usual. Moreover, these are giving the wrong message that everything is fine and nobody has to change a iota in the way he is living. This is wrong. We urge you to define a goal, which is ambitious enough to steer us out of the cliff and clear enough to initiate the necessary changes in the civil society. Hence phasing out We urge you to consider what is necessary in a low carbon development namely a local development, for local people with local resources. Hence phasing out export driven development. Besides being necessary for the planet’ rescue and for our low carbon preparedness, this new development paradigms would open tremendous new opportunities for employments and for a better life in South Africa. With regard to this, we challenge the Minister of water and environmental affairs to produce reports on which she found her statement that “reducing GHG production now would jeopardise SA fight against poverty”? Many studies have proven the contrary. Businesses related to low carbon and renewables have already overtaken FF businesses in a growing number of countries. It is only then that we can start planning for the fossil fuel phasing out and its replacement by renewables. Isn’ it Mrs and Mr members of the Parliament that the long term well being of the majority should supersede the short term interest of a few ? Do you, Mrs and Mr members of the Parliament think that it is responsible to further delay initiating the appropriate changes ? 6. A new dream I would like to end by quoting John Hopkins who said ”all you have to do is to change the dream, and everything else will change along with it. We need to change to an Earth – honouring dream to survive on earth”.
Pierre Louis Lemercier on November 17, 2009, 3:48 pm
Government intervention is doomed to fail. They have never managed to successfully stimulate anything other than the production of problems.
The markets on the other hand, happen to respond fairly well. What are we going to see? A steady rise in the price of oil, which will trigger both demand reduction and investment in alternative energy sources. Unfortunately, since oil demand is fairly inelastic, we're going to see a another spike before demand reduction kicks, but this spike should be of shorter duration because people have been conditioned by the last one to react faster. Alternative energy sources will begin to come on-stream as the price of oil rises, because at the moment, they're economically unviable without massive subsidies.
Noel Grandin on November 17, 2009, 4:18 pm
Scary, but inevitable.
Don’t expect this government to get a grip on this. (That would be laughable) Do the smart & the right things, plan long term. Support non oil-sourced products and technology. Prepare and save for the time when everything becomes hugely more expensive. Make others aware that time is running out. When we all take this seriously and don’t let up, we’ll improve the chances that more is done before TSHTF. Buy ESKOM. (OK, they are presently totally un-green, but we’ll always need oil-even if it is coal based. Coal we have at least enough for the mean time. And perhaps eventually ESKOM too will make carbon based products like oils and petrol from vegetation. The type of technology is there already.)
Twannie Herinck on November 18, 2009, 10:10 am
That was a ridiculous typo here above. 'Meant to write buy SASOL –not ESKOM of course.
(Kicking himself he decided to ban himself for a few days)
Twannie Herinck on November 20, 2009, 5:58 pm
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